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American Government comsider such a claim to be
fundamentally repugnant to the open door principle and to treaty rights, and are not prepared to recognise it as valid or effective in excluding
Americans from any commercial activity in China.
British Government may not be aware that as long
ago as 1917 American Goverment applied this inter-
pretation of the open door against the claims of the China Electric Company (see your despatch No. 584,
1920), which was formed by the American Western
Electric Company with the Chinese Government and was
to have a preference for the supply of all machinery,
apparatus or other materials in connection with
the telephone and telegraph systems required by the
Chinese Ministry of Communications. American
Minister at Peking formally notified the China
Electric Company on January 28th, 1919, that the
preference provided for in 1917 contract would not
be recognised by his Government, and this position
was also explained at the same time to the Chinese
Goverment.
American Government have no doubt that with
this knowledge in mind British Government will not
insist upon an advantage in favour of its nationals
which American Goverment had previously rejected
as unfair and repugnant to treaty rights and equal
opportunity in Chim when claimed by Americans. Should however British Goverment comtime to assert
the preference claimed in favour of the Marcom Company, American Government would be reluctantly
compelled
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